A Florida frost is bad news for buyers of orange juice and for growers who lose their

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A Florida frost is bad news for buyers of orange juice and for growers who lose their crops, but good news for other orange growers.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Nov 08, 2024 07:01 AM

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A Florida frost is bad news for buyers of orange juice and for growers who lose their crops, but good news for other orange growers.
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Economists have estimated that the demand for oranges is inelastic. So if a frost in Florida decreases the orange harvest and decreases the equilibrium quantity of oranges by 1 percent, the price of...
So when a Florida frost strikes, the price of oranges rises by a larger percentage than the percentage decrease in the quantity of oranges and the total revenue of the orange growers increases.
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A Florida frost is bad news for buyers of orange juice and for growers who lose their

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Foundations Of Microeconomics

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